According to an audit published this month by the Department of Treasury, at the end of calendar year 2019, the IRS reported a carryover of 239,285 unprocessed business returns. At the end of calendar year 2020, a carryover inventory of 7,967,182 business returns was reported (a 3230% increase).
Even with the promised addition (a budgeted line item for hiring) of new workers, the IRS and downstream departments are still remarkably behind. Certain systems haven’t been updated to account for policy mandates issues under CARES and subsequent legislation. Certain processes can only be completed by workers who are physically present at an IRS office yet significant numbers of workers continue to operate remotely.
Take note that individual returns filed electronically this year were processed within three weeks while paper returns and amended returns are taking months to capture the attention of a processor. That doesn’t bode well for the looming October 15 corporate tax deadline. Already we’re seeing how the backlog is leaving employers who have trouble with inaccurate 941 forms entirely unable to reach the IRS for assistance.
The same closures of state offices of the Department of Labor have created similar backlogs in manual processes. We’re just now able to defend unemployment claims from June of 2020.
If you’re having trouble contacting the IRS or DOL for assistance with amended forms, please contact your tax provider or Marathon HR Services, LLC at 678-208-2802 for assistance.